Buying car tax question, out of state

[Kaeghl]

I have been getting some mixed answers when I asked a question:
Lets say I buy a car in Wisconsin, totally plausible, I have to pay sales tax in that state, sure no biggie. I am being told that if I then bring the car back to Illinois that I have to pay sales tax AGAIN for the vehicle.

Is this true? that just doesn't seem right to me.

Click to read more...

 

[EmersonHart13]

No you pay tax on cars where you live, period. Which sucks if you live in Crook County.

 

[syP]

x2 ^^^


just did this with my blue g8.

Bought it in nebraska.. All i had to pay there was the price we agreed on plus doc fee. They gave me the title.


I came back here and registered it, and paid the taxes. Sucked because i couldnt finance it (taxes/fees), but it is what it is.

 

[wombat]

x2 ^^^


just did this with my blue g8.

Bought it in nebraska.. All i had to pay there was the price we agreed on plus doc fee. They gave me the title.


I came back here and registered it, and paid the taxes. Sucked because i couldnt finance it (taxes/fees), but it is what it is.

Sometimes you can roll the "estimated" price of the taxes into the loan, and then they cut you a check for the difference...which you can put toward the taxes.

 

[EmersonHart13]

Yes estimated taxes is sometimes an option. I was offered that when I bought in MO.

 

[Bruce Jibboo]

No you pay tax on cars where you live, period. Which sucks if you live in Crook County.

not true, when its an out of state purchase its a flat tax rate, it was 7% back in Oct 2013. Call the DMV to double check.

 

[Kaeghl]

okay guys... so is it a flat tax rate or you only pay taxes in your home state?

 

[Kaeghl]

because I gotta tell ya, if I buy something in a different state they are sure as hell going to charge me taxes for a sale in that state.

 

[EmersonHart13]

I bought from a GM dealer in MO, no tax there. They know how it works.

If the motor vehicle is purchased at retail from a retailer and the purchaser is required to pay the Cook County Use Tax as per Chapter 74 Article VII of the County's Code at the rate of 1%.

I believe this applies...? If not, awesome!

 

[Bruce Jibboo]

In Illinois its a flat rate. Call any one of the DMV's to confirm.

If its small purchase price or older model, you may fall in the minimum tax fee.

 

[Bruce Jibboo]

I bought from a GM dealer in MO, no tax there. They know how it works.



I believe this applies...? If not, awesome!

yep me too, and a loan was involved, I told them it would be 7.25 (kane county), but it turned out to be flat 7% for out of state. The out of state dealer had to re-issue the check to IL DEPT OF REV and send it to me so I could register the car.

 

[EmersonHart13]

I love that minimum tax.... it is a good bucket to be in.

This is what makes Crook stand above the rest: http://www.cookcountygov.com/portal...e,_department_of/313/non-retailer_use_tax/678 (Only applicable to private sale)

 

[EmersonHart13]

RUT-25 is the form you need I believe

https://www.revenue.state.il.us/app/trii/

and

http://tax.illinois.gov/taxforms/Sales/VehicleUseTax/RUT-25-Instr.pdf

and

http://tax.illinois.gov/Publications/Sales/STS-76.pdf

and

http://tax.illinois.gov/Individuals/SalesandRelated/cars.htm

 

[Angus]

Hmmm... I brought my IL car to CA and I have to pay use tax on it (at like 8.5%), but luckily, I bought the car within a year so I am able to deduct from CA use tax the sales tax I paid on it in IL when I bought it.

 

[EmersonHart13]

Hmmm... I brought my IL car to CA and I have to pay use tax on it (at like 8.5%), but luckily, I bought the car within a year so I am able to deduct from CA use tax the sales tax I paid on it in IL when I bought it.

[MENTION=396]Mike K[/MENTION]

Isn't CA weirder than everywhere else?